Zelira shares rocket 28% before being placed on ice. Here’s the latest.

The Zelira Therapeutics Ltd (ASX: ZLD) share price was put on ice in mid-afternoon trading on Tuesday after it rocketed 28.57%.

It followed the company’s request that its shares be placed in an immediate trading halt.

Shares in the medicinal cannabis company were frozen at $1.98 apiece.

Why is the Zelira share price halted?

In a statement to the ASX, Zelira advised it is preparing to make an important announcement to investors.

This is in relation to the receipt of results from Germany’s health regulator, BfArM.

Zelira requested the trading halt remain in place until Thursday 14 July or when the announcement is made, whichever comes first.

A brief rundown on Zelira

Founded in 2003, Zelira is a biopharmaceutical company focused on researching, developing, and commercialising clinically-validated cannabinoid medicines.

The company has a pipeline of cannabinoid-based medicines undergoing clinical development that are waiting for access to the German market.

This includes two products that Zelira launched in 2020, both of which are available in Australia.

The first is its HOPE product which aims to improve the health of people with autism spectrum disorder.

And the other product is Zenivol which helps people with chronic sleep disorder (insomnia).

Zelira share price snapshot

Despite today’s euphoric gains, Zelira shares have lost almost 80% since this time last year.

When looking at year-to-date, the company’s shares are down around 65%.

Notably, Zelira shares hit a multi-year low of 90 cents apiece last month before storming higher.

Based on valuation grounds, the company presides a market capitalisation of roughly $18.9 million.

The post Zelira shares rocket 28% before being placed on ice. Here’s the latest. appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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